SINGAPORE: Saudi Aramco has offered more than 4 million barrels of crude oil through rare tenders as the conflict involving Iran and the United States disrupts oil exports from the Middle East, according to several industry traders.
The state-owned oil giant is reportedly seeking to reroute part of its crude exports through the Red Sea to avoid the Strait of Hormuz, a critical maritime chokepoint through which nearly one-fifth of global oil and liquefied natural gas supplies typically pass.
Several Middle Eastern producers, including Iraq and Kuwait, have also begun reducing oil output amid the near closure of the strait due to heightened regional tensions.
In one tender that closed at 5:00 p.m. Beijing time on Monday, Aramco offered 2 million barrels of Arab Heavy crude scheduled for loading at Ain Sokhna Port in Egypt. The cargo is expected to load between March 10 and March 30, subject to confirmation, and is destined for Asian markets on a free-on-board (FOB) basis.
In a separate tender that closed on Sunday, Aramco offered 650,000 barrels of Arab Light crude on a cost-and-freight (CFR) basis. According to traders, the delivery schedule will depend on voyage time from Yanbu to the buyer’s discharge port.
Additionally, the company sold 2 million barrels of Arab Extra Light crude to Idemitsu Kosan, Japan’s second-largest oil refiner. The cargo, sold on a CFR basis, was already aboard a vessel near Taiwan, traders said.
Both Aramco and Idemitsu declined to comment on the transactions.
The offered cargoes are reportedly priced at premiums to Saudi Arabia’s March official selling prices, reflecting tight supply conditions in the market.
Asia relies heavily on Middle Eastern energy supplies, importing nearly 60 percent of its oil and petrochemical feedstock from the region. With limited immediate alternatives available, refiners across the region are increasingly facing potential production cuts as supply disruptions intensify.
By Reuters
